Archives for April 2017

The market conditions are much more illustrated on the candlestick charts versus trying to anticipate the market trend based upon each individual market index on a daily basis. The breakout through resistance for the Dow, S&P 500, and the NASDAQ has not been diminished. When the Dow is trading slightly lower and the NASDAQ is trading higher, it clearly illustrates the lack of any major change of investor sentiment, the uptrend remains in progress. The Candlestick Patterns, such as the Frypan Bottom, remains very relevant. Especially seeing numerous stocks that are confirming Frypan Bottom Breakout’s Today, i.e. TBBK, ALGN, TVTY,SYNA. Investor sentiment is remains a very viable analytical factor when analyzing Today’s market indexes or individual stocks.

The anticipated consolidation of the market indexes is demonstrating that it is profit-taking/consolidation utilizing a very simple analysis. The Dow and S&P 500 are trading slightly lower while the NASDAQ continues to trade higher. This observation provides the common sense analysis that the markets are not in any stage of reversing, merely profit-taking and/or shifting funds from sector to sector. Big gap up’s through the resistance levels of the past few days of trading still provides strong evidence that excessive bullish sentiment has moved the markets into a new wave. This is why we recommend Gap Analysis.

Stepan Company (SCL)

Over the next 13 weeks, Stepan Company has on average historically risen by 6.5% based on the past 25 years of stock performance.

Stepan Company has risen higher by an average 6.5% in 18 of those 25 years over the subsequent 13 week period,corresponding to a historical probability of 72%

The holding period that leads to the greatest annualized return for Stepan Company, based on historical prices, is 1 week. Should Stepan Company stock move in the future similarly to its average historical movement over this duration, an annualized return of 91% could result.

WIX LTD (WIX)

Chart for WIX

Over the next 13 weeks, WIX LTD has on average historically risen by 12% based on the past 3 years of stock performance.

WIX LTD has risen higher by an average 12% in 2 of those 3 years over the subsequent 13 week period,corresponding to a historical probability of 66%

The holding period that leads to the greatest annualized return for WIX LTD, based on historical prices, is 14 weeks. Should WIX LTD stock move in the future similarly to its average historical movement over this duration, an annualized return of 75% could result.

Expect some consolidation days, especially in the stocks that have moved up excessively over the last few days of trading. However, the market indexes should be going higher based upon the gap ups through the resistance levels over the past few days. Anticipate more upside in the markets. Obviously the political rhetoric out of Washington will have an influence on the overall market trend but currently investor sentiment is showing very bullish results. Look for a potential move of wave three of the Dow towards the 24,000 area. This is not a projection trying to induce great optimism to get investors excited, it is merely the analysis based upon the candlestick chart patterns of this current market uptrend. This is why we recommend Trend Analysis.

The chicken or the egg? Yesterday’s gap up through the resistance level in the major indexes revealed a new investor sentiment. Likely the start of wave three to the upside. Today the markets are up strong again, gapping up. When witnessing a trend that starts with strong gap ups, it usually leads to much more upside. This is a good indication the next major move is in progress. The chicken or the egg? The stronger this market becomes, the more everybody becomes confident in the overall economic conditions, positive sentiment starting to feed upon itself. If today’s market closes near the high end of the trading range, expect more upside of wave three. Candlestick chart patterns have already produced 5%, 7%, 10%, 25% and greater returns over the past few weeks.

Today’s positive trading has more relevancy to the bullish analysis than merely the strong trading of Today. Today’s gap up in the NASDAQ broke out through an obvious two-month resistance level. The Dow and the S&P 500 gapped up through the down trending resistance level, as well as gapping up through the 50 day moving average. Obviously it will be important to see the strength of the markets maintained going into the close. If it does, the prospects for the next wave to the upside is very strong. Now there is a trend analysis it can be easily identified. Any short positions should be closed out if they are not confirming continued weakness. This is why we recommend Gap Analysis.

Alliance Data Systems (ADS)

Over the next 13 weeks, Alliance Data Systems has on average historically risen by 8.9% based on the past 15 years of stock performance.

Alliance Data Systems has risen higher by an average 8.9% in 11 of those 15 years over the subsequent 13 week period,corresponding to a historical probability of 73%

The holding period that leads to the greatest annualized return for Alliance Data Systems, based on historical prices, is 1 week. Should Alliance Data Systems stock move in the future similarly to its average historical movement over this duration, an annualized return of 226% could result.

Badger Meter Inc. (BMI)

Chart for BMI

Over the next 13 weeks, Badger Meter Inc. has on average historically risen by 8.4% based on the past 32 years of stock performance.

Badger Meter Inc. has risen higher by an average 8.4% in 20 of those 32 years over the subsequent 13 week period,corresponding to a historical probability of 62%

The holding period that leads to the greatest annualized return for Badger Meter Inc., based on historical prices, is 1 week. Should Badger Meter Inc. stock move in the future similarly to its average historical movement over this duration, an annualized return of 79% could result.

Mazor Robotics Ltd. (MZOR)

Chart for MZOR

Over the next 13 weeks, Mazor Robotics Ltd. has on average historically risen by 25.2% based on the past 3 years of stock performance.

Mazor Robotics Ltd. has risen higher by an average 25.2% in 2 of those 3 years over the subsequent 13 week period,corresponding to a historical probability of 66%

The holding period that leads to the greatest annualized return for Mazor Robotics Ltd., based on historical prices, is 1 week. Should Mazor Robotics Ltd. stock move in the future similarly to its average historical movement over this duration, an annualized return of 267% could result.

Definite indecision today! It’s not unusual to see a day of consolidation following a big day of trading. However, the indecision is also occurring right at obvious resistance levels for each of the indexes. Although Yesterday’s Bullish trading reduced the prospects of a market selloff, today’s trading is not producing confirmation that a Bullish Trend is about ready to start. Monday will be an important day to see whether the resistance levels are going to continue to act as resistance or whether bullish sentiment can push up through those levels. Do not expect too much movement Today in the overall market, which still makes each individual stock chart the primary criteria. This is why we recommend Trend Analysis.

The indecisive nature of the market trend has been illustrated with the Dow and S&P 500 not able to get back up above the T-line. At the same time, the NASDAQ and the transportation index have traded above the T-line for the last few days. The T-line is a very important confirming factor, until we see all the indexes trading above the T-line, there will not be any decisive trend movement. Today’s positive trading is breaking the Dow and the S&P above the T-line. But like Yesterday’s trading that had started off with the indexes trading positive, that strength needs to be witnessed going into the close today. This would not signal a major reversal. There are still visible resistance levels in the major indexes that need to be breached to illustrate there is a new strength in investor sentiment.

Core-Mark Holding Company, Inc. (CORE)

Over the next 13 weeks, Core-Mark Holding Company, Inc. has on average historically risen by 8.5% based on the past 12 years of stock performance.

Core-Mark Holding Company, Inc. has risen higher by an average 8.5% in 7 of those 12 years over the subsequent 13 week period,corresponding to a historical probability of 58%

The holding period that leads to the greatest annualized return for Core-Mark Holding Company, Inc., based on historical prices, is 2 weeks. Should Core-Mark Holding Company, Inc. stock move in the future similarly to its average historical movement over this duration, an annualized return of 69% could result.

Dycom Industries Inc. (DY)

Chart for DY

Over the next 13 weeks, Dycom Industries Inc. has on average historically risen by 14.3% based on the past 26 years of stock performance.

Dycom Industries Inc. has risen higher by an average 14.3% in 14 of those 26 years over the subsequent 13 week period,corresponding to a historical probability of 53%

The holding period that leads to the greatest annualized return for Dycom Industries Inc., based on historical prices, is 1 week. Should Dycom Industries Inc. stock move in the future similarly to its average historical movement over this duration, an annualized return of 101% could result.